In what sense does Maby talk about “administrative costs”? Non-service related expenses are those that crop up on a regular basis and don’t have a direct bearing on the products or services you sell.
Nail polish, manicure tweezers, and matte topcoat are not included in the administrative costs incurred by a nail salon owner, but things like Wi-Fi fees, gas, insurance, paper, ink, and toner, as well as rent, utilities, and water are. Overhead costs are another name for these expenses because they are necessary to meet operational expenses.
How to Figure Out Your Nail Salon’s Admin Fees
Figuring out your nail salon’s administrative expenses won’t be too challenging.
You should begin by making a detailed budget. Don’t leave anything out, no matter how big or small the amount may be. A common oversight among nail salon owners is to exclude banking fees.
Second, separate the costs into two groups: those associated with administration (indirect costs) and those associated with providing the service (direct costs). To provide services like Manicure, Pedicure, Waxing, and Eyelash Extensions, you incur service costs. The amounts won’t be consistent from month to month, but you should be able to provide a ballpark figure. Incorporate the sum of the two columns.
Finally, we’ll calculate the overall indirect expense as a percentage of the direct expense. Take that figure and multiply it by 100. A term called “overhead rate” describes what you’re left with after everything else is taken into account. Your bottom line will thank you if you can keep your overhead costs to a minimum.
If you have determined that your overhead rate is excessive, perhaps the following suggestions from Maby will be of assistance:
To save trees and the planet, we must first do away with paper.
You should try not to print if at all possible. It is possible to send invoices and schedule appointments electronically. You can tell your customers that going paperless is an effort to reduce your carbon footprint. The use of paper is so yesterday!
When Printing Is a Necessity
There will always be one or two customers who aren’t tech savvy and will want paper printouts instead of electronic ones. To keep them as clients, you might have to make concessions. It is recommended that you always print in black and white and double-sided.
Stop using your landline altogether
These days, people can stay in touch with one another without spending a dime. Skype, Google Voice, or even a cheap cell phone line are all options to consider. There are fewer people who will notice if you don’t have a landline and you can get away with it if you run a small business. No longer should you waste money on a landline phone just to send and receive faxes.
Put in place as much automation as you can
Do not delay in establishing a web-based reservation system. The Maby app is a time- and money-saving online booking system. Appointments can be scheduled at any time of day or night, and clients can opt to receive confirmations via email or text message. Appointment scheduling software comes in a wide range of prices, but many of them are free. The key is to zero in on the approach that works best for you and your clientele.
Seek Tax Counsel
Payment processing fees, for example, may qualify as a tax deduction, but you may not be aware of this. You might end up saving a lot of money by taking advantage of these deductions. Invest in a tax consultant to ensure that you are maximizing your refund by claiming all of your deductions at the outset.
When running a nail salon, it’s crucial that you keep a close eye on your finances. Having employees can make things more complicated, but that is no excuse to lose focus. Establish an online booking system for the nail salon to examine costs and identify savings opportunities. If you stick with the Maby app, you’ll soon see a significant increase in your company’s revenue. Really, it’s up to you.